\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 48 Broadex Technologies Co.Ltd(300548) )
Events
The company released its 2021 annual report. In 2021, it realized an operating revenue of 1.154 billion yuan, a year-on-year increase of 48.59%; The net profit attributable to the parent company was 162 million yuan, a year-on-year increase of 83.60%. At the same time, the couple of actual controllers of the company, the couple of vice chairman and deputy general manager and Tiantong holdings transferred a total of 12.72% of the shares of the listed company and 25.43% of the voting rights of the listed company to Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) at a transfer price of 40 yuan / share. After the equity transfer is completed, Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) will become the actual controller of the company.
Our comments are as follows:
Global fiber to home construction + China’s Gigabit broadband upgrade, promoting the rapid development of the company’s business. Digital communication market products realize scale income and look forward to accelerating growth in the future. On the revenue side, the company’s telecom market revenue in 2021 was 1.111 billion yuan, with a year-on-year increase of 56.38%, and the shipment volume increased by more than 1 million. The increase was mainly due to: 1) the accelerated deployment of Gigabit broadband by Chinese operators and the continuous investment in 10gpon network construction. The company’s market share of 10gpon OLT optical modules was leading, driving the rapid growth of the company’s sales of 10gpon OLT optical modules; 2) The demand for overseas access networks continued to grow, and there was still room for greater improvement in overseas fiber to home penetration. The company’s overseas revenue was 203 million yuan, a year-on-year increase of 127.24%; 3) The market demand for wavelength division transmission is stable, and DWDM devices are upgraded to higher rates such as 200g.
In 2021, the company’s digital communication market revenue was 43 million yuan, a year-on-year decrease of 34.64%, and the shipment volume was 320000, which decreased slightly compared with the same period. The decline in price had a certain impact on the revenue.
The gross profit rate decreased slightly. With the continuous expansion of product shipment scale, the scale effect is expected to appear.
From the perspective of gross profit margin, the overall gross profit margin of the company in 2021 was 22.93%, with a year-on-year decrease of 2.78 percentage points, of which the gross profit margin of telecom market was 23.75%, with a year-on-year decrease of 2.66 percentage points, and the gross profit margin of digital communication market was 1.89%, with a year-on-year decrease of 16.27 percentage points. From the perspective of cost structure, with the continuous increase of the company’s overall production capacity, the cost of labor and equipment depreciation increases. However, the revenue of digital communication market has declined, which has a great drag on the gross profit margin. In the future, with the continuous and rapid growth of the company’s telecommunications market, the data communication market is expected to gradually resume growth, the scale effect is expected to appear, and the overall profitability is expected to be steadily improved in the future.
Changfei shares, optimistic about the long-term development value of the company, and the future business collaboration is expected to help the long-term development of the company.
Changfei plans to acquire 12.72% shares and 25.43% voting rights of the company. After the transfer, Changfei will become the controlling shareholder of the company. The transfer price is 40 yuan / share, which is significantly higher than the current price, reflecting the recognition of the long-term development value of the company. At the same time, as an important optical communication manufacturer in the world, Changfei’s product structure and customer resources are highly coordinated with Bochuang, and Changfei’s existing optical module business is expected to be gradually integrated with Bochuang in the future, so as to further strengthen the overall competitive strength of the optical module market and help the company’s long-term development.
Looking forward to the future, the construction and upgrading of optical fiber broadband outside China will drive the core growth of the company. The full range of products such as digital communication, silicon light and 5g will open up greater growth space, and the equity incentive will clarify the long-term growth goal.
China’s Gigabit broadband construction is expected to continue its high boom, and the strong demand for fiber to home in the overseas regional market promotes the continuous growth of the company’s broadband access products. The company’s capacity continues to be released and its market share is leading, laying the foundation for the company’s high growth. It is expected that the high-speed shipment of 25g optical cable and 400g optical cable modules to China will be accelerated, and the main products of 400g optical cable will enter the mass production stage in the future; 2) 5g silicon light 25g LR front transmission and 50g pam4 middle transmission products have been mass produced and shipped, and we look forward to continuous volume increase in the future. The company promotes the new phase of equity incentive and takes the total income of the interval as the assessment target. If each phase is completed, the income targets for 22-25 years will not be less than RMB 1.24 billion, 1.36 billion, 1.51 billion and 1.67 billion respectively, corresponding to a compound growth rate of 16.5%, so as to further strengthen the development momentum of the overall team in the future.
Profit forecast and investment suggestions:
The company has a leading market share in 10gpon OLT, Gigabit broadband has laid the foundation for high performance growth, and digital communication and silicon light 25g are expected to continue to bring performance increment. Considering the amortization of equity incentive expenses and the low gross profit margin of digital communication products, the forecast of the company’s net profit attributable to the parent company in 22-23 years is adjusted from 240 million yuan and 370 million yuan to 230 million yuan and 320 million yuan respectively, and the net profit attributable to the parent company in 24 years is expected to be 380 million yuan, corresponding to 22 times of price earnings in 22 years and 16 times of price earnings in 23 years. The rating of “increased shareholding” is reiterated.
Risk tip: the downstream demand is lower than expected, the progress of new products is slower than expected, the impact of the global epidemic is higher than expected, and there is still uncertainty whether the equity transfer can be completed
